- 23 Apr 2025
- ICICIdirect Research
MAHINDRA FINANCE POSTED MIXED Q4 RESULTS WITH LOAN BOOK GROWTH OF 17% YOY
M&MFIN - 256 Change: -0.55 (-0.21 %)News: Mahindra Finance posted mixed Q4 results with loan book growth of 17% YoY to ₹1,19,673 crore, while NII grew moderately at 9% YoY (1% QoQ) due to NIM compression to 6.5% from 7.1% in Q4FY24. Higher credit costs of 1.4% and increased provisions of ₹457 crore impacted profitability, with PAT declining 9% YoY to ₹563 crore. RoA declined to 1.7% from 2.2% in Q4FY24, though operating expenses remained stable. Asset quality showed slight improvement sequentially, though collections remained in a range during the quarter.
View: Improving disbursement and diversification of book is targeted, though delivery on the same needs to be seen. Cost of funds expected to bottom out with benefit accruing from reversal in rate cycle, however, opex and credit cost could remain sticky for a while this limiting improvement in RoA.
Impact: Negative